Walt Bettinger explains to Wall Street why some prospects are balking at investing in Schwab franchises

I think I should clarify the comments I made to Lisa Shidler about this topic.

First I would agree with both Ms. Diamond and Mr. Shanks, that it should be relatively easy for a good broker to hit a million a month or more in new assets.
That is not what I was addressing in my comments. Personally I work with some ultra high net worth brokers who would not invest time with new clients with less than $10 million in assets to invest.

The issue here is that Schwab is not bringing on brokers who have hit those kinds of numbers in the past. Additionally, they are setting up store front shops near malls and Walmart stores (one less than 1/2 a mile from trailer parks) and targeting small account, blue collar, walk in traffic.

This model reminds me of Quick and Reilly or H&R Block.

Do the math.
How many small accounts (as little as $300) does it take to hit a million a month in new assets?
If a broker target clients with more money to invest they will have an easy time hitting those numbers.

I have more questions than I do answers about this franchise and have changed my opinion of it since writing the article about the new franchise in NH. Many people have reached out to me since that article was published.